Chapter 7 The Firm. Business Firm. Employs factors of production Produces goods and services Sells to consumers, other firms, or the government We work for and buy from firms. Market. Two sides Buyers Utility is major decision making device Sellers How do they make decisions.
© South-Western College Publishing 1998
How do we calculate these costs??
Give two ways to get to the cost…
A CLOSER LOOK
When MC is below
Production in the
short run: at
least one fixed input
When MC is above
Do we understand Chapter 8??